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Savings Investment limit

Savings Investment limit

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Hi 

A client( Individual)  is paying in both ISA and Life Savings Investmnet Plan. ISA contributions for tax year 20-21 is £20k and  paid £around £10k in Life Savings Investmnet Plan. Question is , total payments of £30k counted towards annual investment limit ? in other words over payments/invest is liable to charge?

Many thanks

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By 356B
16th Jan 2022 20:50
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Replying to 356B:
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By Hugo Fair
16th Jan 2022 20:53

But they're not necessarily tax-free.

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Replying to 356B:
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By Adzuk
16th Jan 2022 21:13

thats it ,client is with Foresters for LSIP, THANK YOU.

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By Hugo Fair
16th Jan 2022 20:52

You need to be a lot more precise:
* Life Savings Investment Plan - which specific plan is this?
[AFAIK it is not a pre-determined type of investment, just a generic descriptor that encapsulates lots of different plans (which for instance may not be tax-free).]
* Annual Investment Limit - limit for which type/scheme?
* Over payments/invest liable to charge - what charge are you concerned about?

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Replying to Hugo Fair:
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By Adzuk
16th Jan 2022 21:23

You need to be a lot more precise:
* Life Savings Investment Plan - which specific plan is this?Its Foresters LSIP plan.
[AFAIK it is not a pre-determined type of investment, just a generic descriptor that encapsulates lots of different plans (which for instance may not be tax-free).]
* Annual Investment Limit - limit for which type/scheme? sorry, i meant to ask ISA allowance ?
* Over payments/invest liable to charge - what charge are you concerned about? Client has exceeded £20k ISA allowance ( one is ISA scheme and other is LSIP).
Probably, i am mixing two different things/schemes?

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Replying to Adzuk:
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By Hugo Fair
16th Jan 2022 22:45

Well according to the URL kindly provided earlier by 356B, Foresters says "Even if you already have a Cash and/or Stocks and Shares ISA, you can still have a Savings & Investment Plan and there is no investment limit."
However I wouldn't just accept that as gospel and would ask Foresters to confirm (preferably in writing) the situation in your specific scenario.
If the LSIP is not subject to the ISA allowance, then you're OK?

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By Tax Dragon
17th Jan 2022 06:50

The question is whether the LSIP forms an opaque wrapper (which I doubt) and, if not, whether it invests in tax-advantaged products. In this case, specifically, an ISA. I'd doubt that too but you obviously have to verify.

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